Address 

By 

HOWARD ELLIOTT 

ii 

President 
Northern Pacific Railway Co. 



I 



Delivered at the 

Third National Apple Show 

Spokane, Washington 
November 14, 1910 



Form 3886 



1UN 8 Wt 






The Third National Apple Show 



Address by 

HOWARD ELLIOTT 



The Third National Apple Show opens to-day in Spokane, and 
this city and the Inland Empire welcome the exhibitors and visitors. 

The First National Apple Show in 1908 was good; the second 
one in 1909 was better, and the one that you will now see is the 
best up to the present time, but not the best that can and will be 
given. 

Many politicians long to attain the position where "the office 
seeks the man." As your President, I am in that enviable position, 
for your trustees, after the last Apple Show, were quite insistent 
that I serve again ! I felt then as I feel now, that rotation in office 
would be the better plan, but was glad to bow to the wishes of the 
trustees and do what I could to promote the apple business in the 
United States. I wish to express my thanks publicly to the trustees, 
and to those they represent, the apple growers and exhibitors, for 
the compliment paid in giving me a second term. 

To the trustees, to the growers and exhibitors, to the efficient 
Secretary-Manager, Mr. Rice, and to the citizens of Spokane who 
support the National Apple Show, the thanks of all interested in 
apple growing should be given, for the time and energy spent in 
arranging for the wonderful exhibit now thrown open. 

Production This National Apple Show means much in increasing 
of Apples, the use of the Apple all over the world, not as a luxury, 
but as an important element of daily food. As all 
of you know, the production of apples in the United States has fallen 
from 60,453,000 barrels in 1895, to 22,735,000 barrels in 1909, 
although the population of the country has increased during that 

3 



period from 70,000,000 to 90,000,000, and this great decrease in 
the production of a valuable food comes at a time when our growing 
population needs all forms of food in constantly increasing quantity. 
Fifteen years ago nearly one barrel per capita was produced and 
now only one-fourth of a barrel ; there is no evidence here of over- 
production. 

High Cost Much has been said about the high cost of living, and 
of Living. there are numerous causes for it, and some of these 
causes are within the control of each one of us. One 
cause is that we, as a nation, and as individuals, are extravagant, 
and we want all sorts of conveniences and luxuries that a few years 
ago were not thought of. There should, and must be, greater care 
and economy in expenditures by the individual, municipality, county, 
state, and by the nation, and there should be less waste and extrav- 
agance. Much can be learned about the question of saving and 
careful living from the old-fashioned New England man; the care- 
ful Dutchman from New York; the prudent Quaker from Pennsyl- 
vania, and the frugal people of Europe. Their habits of self-denial, 
industry and thrift are just as much needed now for the develop- 
ment of this country as they were 50 and 100 years ago. The 
national drift from these simple habits of living is one of the dangers 
now confronting the country. 

Governmental Mr. Hill, in an admirable address at the Minne- 
Expenses. sota Conservation Congress, gave the following 

figures for the United States which should be con-, 
sidered carefully by every thoughtful man : 

INCREASES. 

Wealth 1870 to 1890 1 16.0% 1890 to 1904 65.0% 

Foreign trade 1870 to 1890 99.0% 1890 to 1908 85.4% 

Value m'fd products. . . 1870 to 1890 121.0% 1890 to 1905 58.0% 
Net ordinary expense, 

U. S. Government. . . 1870 to 1890 1.4% 1890 to 1908 121.4% 

Expenditures, 30 states. . 1890 to 1909 201.6% 

These figures show that while our wealth, foreign trade, and 
manufactured products have increased handsomely, the expenses of 

4 



the United States government, and the 30 states for which figures 
could be obtained, have increased at an alarmingly rapid rate, and 
this great increase in public expenditure is one of the reasons for 
our higher cost of living. Every citizen can do something in his 
own community to cure this particular difficulty. 

City and Another cause is, that there is a greater proportion of 
Country, people living in towns and cities and producing no food, 
than there used to be : for example, in 1790 3.4% of our 
population lived in cities and towns, and in 1900 31.1%, and the indi- 
cations are that in 19 10 this proportion will be at least one-third. 
The beautiful State of Iowa, one of the best agricultural States of 
the Union, according to the census figures just published, actually 
shows a decrease in population during the last decade. This is due, 
in part, to the drift to the large cities, and in part, to the movement 
of Iowa people to Canada. The great State of Missouri, that has 
within its borders almost everything that is needed for the support 
of a population, only shows an increase of six per cent. The in- 
creasing demand for food is making farm property more valuable : 
the last census shows that farm property in Iowa increased in value 
117%, and what is true of Iowa is true of the agricultural States 
in the Mississippi- Valley and west thereof. 

The industry of raising apples will act as a check, in part, to 
this drift to the cities, and is furnishing and will furnish a healthful 
and profitable occupation for a great many people who apply intelli- 
gence and hard work to the business. 

Food Value The food value of the apple is not understood well 
of Apples. enough, and this should be made plain by the grower 
and those interested in helping him to obtain the 
widest possible market. An examination of the cookery books and 
the periodicals devoted to food, shows that there are many ways in 
which fruit and fruit products can be cooked and served. At the 
Apple Show of the Berkeley County Horticultural Society, held at 
Martinsburg, West Virginia, November 4 and 5, 1909, detailed 
recipes were furnished showing 101 ways for using their apples. 
One most desirable exhibit of the National Apple Show is the 
department of domestic economy, where apples are served in various 
forms. 

5 



Apples, when dried, and therefore more concentrated than when 
fresh, compare favorably with bread, dried beans, and similar foods 
in the total amount of food material present, and the apple, either 
fresh or dried, or preserved, is a source of energy rather than of 
tissue forming material. On account of the great decrease in the 
total amount of apples produced in the United States, the fruit is 
becoming something of a luxury and is used rather for its pleasant 
flavor than for its food value. Very careful experiments have been 
made by the California Experiment Station, in co-operation with 
the nutrition investigation of the office of Experiment Stations (a 
subdivision of the Agricultural Department) ; by the North Dakota 
Agricultural College, and by Harvard College, as to the results to 
be obtained from different forms of diet. It seems very clear from 
the investigations that have been made that fruits should not be 
looked upon simply as a luxury, but should be considered as an 
economical source of nutrition for the average family. Fruits, espe- 
cially cooked, are almost completely digested, and have a higher 
nutritive value than is popularly attributed to them. The result of 
experiments makes it clear that fruits are reasonably cheap sources 
of energy in the diet, and are well suited, on grounds of economy, 
for combination in reasonable quantities with cheap proteid foods 
to furnish a well balanced ration. Ten cents worth of fresh apples, 
used as food, furnishes 1467 units (calories) of energy to the body; 
ten cents worth of porterhouse steak furnishes 444 units (calories) 
of energy; ten cents worth of dried beans furnishes 892 units (calo- 
ries), so that, in general, it may be said that the apple furnishes a 
wholesome, palatable and very attractive addition to the food sup- 
ply of the family ; and the increasing production of the apple should 
help to offset the growing price of meat and other forms of food. 

Decrease in The great falling off in the production of apples is 
Production. probably due to the fact that in the older States in 
the East, the growing of apples was incidental to 
other forms of agriculture, and was not a business by itself. When 
the trees were young, the production was good, but gradually, as 
the trees grew older and orchard pests increased, the attention neces- . 
sary for a crop of apples became greater, and the orchards not 
receiving it gradually failed. 



Twenty-five years ago, in a small Michigan town, dependent for 
its principal business upon the handling and packing of apples, large 
warehouses were in use for handling the apples, and a large number 
of men employed to take care of the fruit. Now, only one apple 
warehouse remains, and other crops have taken the lead. 

The Commercial In the early days, scientific growing of apple 
Orchard. trees was not much thought of. Now, the 

day of the commercial orchard has come, 
not only in the West, but all over the country, and men are 
giving the same careful and thorough attention to the pro- 
duction of apples that they are giving to the production of 
steel, and making of agricultural implements, or to any other 
business that is conducted with skill and intelligence. 

The National Apple Show, by bringing together the best 
minds in the business, is a potent force in helping to place 
apple growing on a sound, scientific and commercial basis. 

The study, attention and care given to the production of 
fruit, by the grower, must, as that production increases, be 
supplemented by efforts for publicity as to the use of the apple, 
combined efforts for seeking wider and wider markets, and 
additions to the facilities for storage and transportation of the 
fruit. 

Storage. It is not an idle statement to say that in a few years 
there will be 100,000 carloads of apples marketed 
from Washington, Oregon, Idaho and Montana alone, and 
there is a growing production of apples in the states in the Mis- 
sissippi Valley and east thereof. All of the increased pro- 
duction of apples cannot be placed within the 60 days of har- 
vesting at the point of ultimate destination, and it would be 
an economic mistake to try to do so. Therefore, it will be 
necessary, for the apple grower to do what the wheat grower 
has done, namely: provide means for holding part of his crop 
near the primary market. So far the efforts of the fruit grower 
have been concentrated largely and very properly upon the 
production and upon the best methods of caring for the young 
and growing trees, and that work must still continue. Now, 
the best apples command a higher price in many of the great 



cities of the country than do oranges, but to have the maxi- 
mum use of the apple as food, commanding a reasonable price, 
means must be provided to prevent glutting of the market 
at consuming points in the few autumn months. No doubt 
there will have to be a combination of storage plans, just as 
there is about grain. Today, the producer of grain has more 
or less storage on his own farm, some at the nearby railroad station 
in a warehouse or elevator, and some at the large elevators and 
warehouses at great terminal points. In the same way, as apple 
production increases, the grower must have some means of caring 
for his crop at his home orchard, some co-operative storage at the 
nearby station, and larger plants at various points throughout the 
United States. 

Fruit Growers A good example of the benefits of co-operation 
Association. is shown by the results obtained by Fruit Grow- 

ers' Associations. It availed little to produce 
first class fruit unless it could be delivered to the consumer in 
first class condition, attractive to the eye as well as to the palate. 
Until a few years ago not enough care was given to the hand- 
ling of fruit while being harvested and packed, and not enough 
attention to the manner of packing or the appearance of the 
package. Now, as a result of Fruit Growers' Associations, has 
come the keenest rivalry between the different fruit growing dis- 
tricts, not only as to the quality of the fruit, but as to its free- 
dom from blemish, and the attractiveness of the pack and the 
package when it reaches the consumer. The brand of an Asso- 
ciation that has established a reputation for honest packing is a 
valuable asset to every grower in the district it represents, and this 
explains the occasional instances we hear of where Associations 
have refused to allow their brands to be placed upon packages 
packed by some of their members because of poor quality, dishonest 
or inferior packing. 

Not only in the handling and packing, but in the marketing 
of the fruit also, and in various other ways, such as the construc- 
tion of storage plants, too expensive for the individual growers, 
are the Associations proving themselves of value to their mem- 
bers, and as time goes on they will become still more valuable. 

8 



Transportation As the apple crop increases, the necessity f@r 
and Its Effect adequate transportation, as well as for ade- 

on Land Values, quate storage increases. Too often, the shipper 
by rail, fails to realize some of the conditions 
in this country today because of the construction of railways, and 
forgets the conditions that would have existed if there were none 
here. Take the Yakima and Kittitas Valleys, for example, 
because approximately accurate figures are obtainable. There 
are about 500,000 acres of land that ultimately will be 
under irrigation between Ellensburg and Pasco, and along 
the Columbia River. Of this, about 315,000 acres are under 
constructed canals, and 185,000 acres are now under cultivation, 
divided: 40,000 acres in fruit; 130,000 acres in hay, and 15,000 
acres in other crops. Let us suppose, for example, that there 
was no railway in that section, and the only means of transporta- 
tion was by team or river; what would be the value of the land, 
and how would the products from it be marketed? It is obvious 
that fruit and vegetable products could not be marketed, and the 
land would have to be used for raising stock that could be driven 
to some point where they could be transported to market. Today, 
that 185,000 acres of land is fairly worth on an average at least 
$300 per acre, or $55,500,000; without the railway, would it be 
worth an average of $10.00 an acre? Perhaps so, or $1,850,000, 
and it is not unfair to say that the existence of rail transportation 
has increased the value of that 185,000 acres of land at least thirty 
times. 

In Central Oregon are plains and valleys where with irrigation 
and transportation there are thousands of acres that can be made 
as productive as the orchard land of Washington, but, to-day, the 
land is almost useless, and has only a speculative value, based on 
prospective transportation and its value in producing stock. 

What is true of the Yakima Valley is true of the whole country 
west of the Mississippi River, between the Canadian and Mexican 
boundaries. 

Without the great transcontinental lines and their branches, the 
country could not have achieved the development and consequent 
ability to support in reasonable comfort anything like the population 
that it now has. To market the increasing products of the great 
West, it is necessary to have wide distribution and low rates. 



Rates and The greater portion of the apples produced in the West 
Service. must find a market east of the Missouri River and ex- 
tending all the way to the Atlantic Seaboard, and even 
across the Atlantic some of this product has made its way. In this 
vast country of ours, we are so accustomed to great distances that 
we take them for granted without stopping to consider their signifi- 
cance ; it means something and costs something, however, to trans- 
port a box of apples from Western points to New York, nearly 3,000 
miles. For this transportation, and because of the perishable char- 
acter of the product, first-class fast service is necessary. The rail- 
way receives 48 cents per box, or about half a cent per apple. When 
the grower hears that his apples are being retailed at 10 cents each 
in Chicago or New York, he should keep in mind how much the 
railroad received as its share, and look elsewhere for the difference. 
If he still thinks the transportation expense too high, he might do 
some figuring on what it costs to wagon haul his apples from his 
orchard to the railway station; he will find, if the distance is five 
miles and the roads are of the average character that prevails in the 
irrigated districts of the West, that it costs him about 10 cents per 
box, and he will doubtless turn his attention to something entirely 
in his own power to improve, and that is the wagon roads, for it is 
a fact that his fruit runs more risk of damage in a five-mile wagon 
naul over poor roads than in the 3,000-mile rail haul. 

The apple grower, who at times feels that the railway does not 
do what is right, should remember the obstacles that have been over- 
come by the owners of the railways in the last forty years and not 
let small things blind him to the great work that has been and is 
being done, and should obtain full knowledge of all the conditions 
surrounding the railways before he condemns them and subjects 
them to unjust criticism and attack. 

Not Enough Another contributing cause to the higher cost 
Hard Work, of living is the fact that there is a growing tend- 
ency in this country to insist that a living can 
be obtained with less and less work, so that the labor cost on 
a great many articles has increased very materially. Every 
man can do some good by pointing out that business can only 
pay such wages as will permit it to go on. There is a much mis- 
understood expression about railway rates, namely: that they are 

10 



made on the theory of "what the traffic will bear;" this does 
not mean all that the traffic will bear, but means that the rates 
are so adjusted that the business will move, the country grow, 
and give some margin of profit to the owners of the freight, 
and some to the mover of the freight. Without such condi- 
tions, railways will not be built. On the other hand, the man 
who works for wages must remember that he cannot fix his 
wages on the basis of "all that the traffic will bear," but must 
consider business as a whole, and realize that the owner must 
have a margin or he will give up his business. 

Necessity for More Mr. Knapp, Chairman of the Inter- 

Transportation Facilities, state Commerce Commission, made 

the following statement: 

"The question of railroad rates, that is to say of railroad 
revenues, involves a great deal more than the direct interest of 
shippers or shareholders. Broadly speaking, it is a question of 
national policy second to none in its economic importance. 

"Leaving out of account the comparatively small number of 
actual shippers and security-holders, I suggest three aspects of the 
question which are of general and intense public concern. The 
country, as a whole, needs and must have, if it is to grow and 
prosper as it ought, railway earnings sufficient for three things : 

"(i) The payment of liberal wages to an adequate number 
of competent men * * * in service which is all the while 
becoming more exacting, and on which the safety and the con- 
venience of the public constantly depend. * * * 

"(2) A reliable return to railway capital sufficient to induce 
the construction without delay of hundreds and thousands of miles 
of new railroads to further develop the country and meet the 
transportation demands of the immediate future. * * * Must 
we not, in the public interest make railroad construction so attrac- 
tive and profitable that the necessary capital will be forthcoming? 
Otherwise, must we not come measurably to a standstill and face 
a future of comparative stagnation? 

"(3) The betterment of existing lines so as to greatly aug- 
ment their serviceableness to the public, as can in varying degrees 
be done everywhere, without any increase of capitalization that can 
be fairly avoided." 

11 



Mr. Knapp has perhaps understated the number of those in- 
terested as security-holders and shippers. There are at least 1,000,- 
ooo security-holders, representing not less than 4,000,000 people, 
including many charitable institutions, women and children, and 
among the assets of every insurance company and savings bank 
are railway securities, so that a very considerable number of people 
are interested deeply as owners in the rates charged by railways. 
Then again, there are in the agricultural States a very large num- 
ber of people who are shippers, and in the country as a whole 
a very large number who are users of the railway for travel. 

Points two and three made by Mr. Knapp are very important 
to a new, growing and expanding country like that west of the 
Mississippi River. Every railway in that country must spend 
very large sums of money to provide facilities needed to keep pace 
with the growth of business. 

What the Railway The demagogue often tries to give the im- 
Owner Has Done. pression that the railway owner is a rich 
man, and a non-resident, who is taking very 
much more from the country than he gives. This is not a fair, 
nor a true statement. I have the exact figures for the Northern 
Pacific for the ten years ending June 30, 19 10. During that period 
the owner of the property has put back into this western country 
for improvements and additions to existing lines, for new equipment 
and for building new railways $1.42 for every one dollar he has 
received in the form of dividends or 42% more than he has 
taken out. This additional money he has either borrowed or 
advanced voluntarily from funds belonging to him. Not a very 
lucrative return for the railway owner who takes all the risk of 
business with no guarantee of protection. What the Northern Pa- 
cific has done has been done by the Great Northern, Union Pacific, 
Santa Fe, and all of the big railways must continue to do the same 
thing if we are to avoid "coming to a standstill and facing a future 
of comparative stagnation," as suggested by Chairman Knapp. 

Now, why did the railway owner invest this money? It was, 
of course, for the same reason that men embark in any business 
enterprise — in the hope of making a profit. It was not invested 
with the idea of getting a return of only 4%; 5% or 6%, because 
the owner better loan his money on farm mortgages and avoid the 

12 



risk of business if that is to be his limit. Recently, a Chinese loan 
of $50,000,000 has been floated in this country, and why? Simply 
because the investors feel that there is a greater chance of profit in 
building and operating railways in China than there is to-day in 
the United States. 

Higher Cost of Living All these elements that make for higher 
for the Railways. cost of living for the individual and for 

the ordinary business man, namely : in- 
creased governmental expenditure ; greater proportion of people liv- 
ing in towns than in the country ; higher wages, and a less quantity 
of work for a like amount of money; increased cost of materials, 
affect the cost of living of the railway, and in addition, there is an 
incessant and increasing demand of a prosperous people for more 
expensive facilities, causing an interest charge on the money for 
creating them, and greater expense for operating them, with no 
corresponding increase in the price obtained for the use of them. 

Diminished Power Mr. C. C. McCain has published a most 
of Railway Earnings, careful book called "The Diminished Power 

of Railway Earnings," and he shows in 
great detail, and with many examples, how a dollar in 1907 would 
buy very much more rail transportation than in 1897. Since 1907, 
wages have increased still further, and prices of most materials are 
as high or higher so that the figures for 1907 can be used for the 
present day. In 1897, railway wages were $465,601,581, and in 
1907 $1,072,386,427. Taking the pay of railway employes, as a 
whole, it is shown conclusively that a dollar of railway earnings 
in 1907 would not buy more than 84%, on the average, as much 
railway labor as it bought in 1897. In order to equalize this fall 
in the purchasing power of a dollar of railway earnings, there 
should have been an average advance in rates of 19.43%, instead 
of which the rates have fallen from 1897 to 1907, as follows: 

1897 1907 1909 

Rates per ton mile (mills) 7.98 7.59 7.63 

Rates per passenger mile (cents) 2.022 2.014 1.928 

In 1897, $1.00 had to be spent for locomotive fuel for each 
$17.25 of gross railway receipts, while in 1907 $1.00 for locomotive 
fuel was used for each $12.93 °f gross receipts. 

13 



The articles commonly used by railways, in ten years, have 
advanced in price all the way from 10 to I50%,*and every item 
of operating expense is very much greater now than it was in 
1897. This increase has been offset, in part, by the use of 
larger tools by the railway, but the end is in sight, because the 
gauge of the railways cannot be widened, a greater weight 
cannot be put upon- the wheels than now, and the size and 
capacity of cars and engines is, therefore, limited. The in- 
crease in governmental expenditures is reflected in the fact 
that railway taxation per mile of line increased from $235 in 
1897 to $382 in 1909, or 62%. The taxes for the Northern 
Pacific for the year ending June 30, 19 10, were $628.29 per 
mile of line, an increase of 42%, in one year. 



Ability of People to Buy More 
Transportation for a Dollar. 



Higher wages, and higher 

prices for commodities traded 

in, and a lower average freight 

and passenger rate furnish all classes of people ability to buy 

more railway service for a dollar than formerly. 

Dunn's Review has compiled statistics showing that the 
power to purchase railway freight service by the producers in 
various classes of commodities, as shown below, has increased 
in ten years, an average of 49.37% : 





Relative Prices 


Power to purchase railway freight 
services. 


Class of 


At the 

average rate 

per ton per 

mile of 1897, 

ton-miles. 


At the 

average rate 

per ton per 

mile of 1907, 

ton-miles. 




Articles. 


January 
1, 1897. 


January 
1, 1907. 


Increase 
Per Cent. 


Breadstuffs 

Meats 

Dairy and Garden. 

Other food 

Clothing 

Metals 

Miscellaneous 


$11.73 
7.33 
10.46 
8.17 
12.40 
13.01 
12.40 


$16.08 
9.35 
14.97 
9.76 
19.64 
18.09 
19.37 


1470 
918 
1310 
1024 
1555 
1631 
1553 


2118 
1232 
1972 
1286 

2587 
2383 
2554 


44.08 
34.20 
50.53 
25.59 
66.37 
46.11 
64.46 


Total 


$75.50 


$107.26 


9461 


14132 


49.37 



The commodity figures represent the wholesale cost at the two 
periods, of the articles used in a year by an average inhabitant of 

14 



the United States. 
as follows : 



Similar figures for agricultural products are 





! 










Increased 




Value of 
crop of 1907. 


Unit 




Price 




Power to Pur- 


Product 


1897 


1907 


Increase 
per cent. 


chase Railway 
Freight 
Service 
Per Cent 


Corn 


$1,336,901,000. 


Bushel 


$0,263 


$0,516 


96.20 


106.28 


Wheat 


554,437,000. 




.808 


.874 


8.17 


13.73 


Oats 


334,568,000. 




.212 


.443 


108.96 


119.70 


Barley .... 


102,290,000. 




.377 


.666 


76.66 


85.74 


Rye 


23,068,000. 




.447 


.731 


63.53 


71.94 


Buckwheat 


9,975,000. 




.421 


.698 


65.80 


74.32 


Potatoes. . . 


184,184,000. 




.547 


.618 


12.98 


18.79 


Hay 


773,507,000. 


Ton 


6.62 


11.68 


76.44 


85.51 


Cotton 


613,630,436. 


Pound 


.066 


.104 


57.58 


65.68 





Jaunary 
1, 1908. 


Average price, each. 


Increased 
Power to Pur- 
chase Railway 
Freight 
Service 
Per Cent 




January 
1, 1897. 


January 
1, 1908. 


Increase 
per cent. 


Horses 

Milch Cows 

Cattle, except 
Milch Cows .... 

Sheep 

Swine 


$1,867,530,000. 
416,939,000. 
650,057,000. 

845,938,000. 
211,736,000. 
339,030,000. 


$31.51 
41.66 
23.16 

16.65 
1.82 
4.10 


$93.41 

107.76 

30.67 

16.89 
3.88 
6.05 


196.45 

158.67 

32.43 

1.44 
113.19 

47.56 


211.69 
171.97 

39.24 

6.65 

124.15 

55.14 



These figures prove that by reason of the higher price he received 
for his product, together with the decrease in freight rates, the 
farmer producing a bushel of corn could purchase a little over twice 
as much freight transportation with the proceeds in 1907, as he 
could have purchased in 1897, and so on with all other agricultural 
products to the extent shown in the tables. 

The average power of all commodities to purchase railway 
freight service has increased 51.79% ; on the farm, production as a 
whole 69.19%; lumber and building materials, 70.85%; food, 
41.22%; house furnishing goods, 38.74%; metals and implements, 
74.10% ; labor from 10% to 60%. 

Efforts of Now, the railway is working hard to do its part, but 

the Railway, it cannot accomplish the impossible, and it needs the 
careful thought, judgment, and help of men in busi- 
ness life who need to have the railways grow and improve. The 

15 



railway system of the United States is a great piece of commercial 
machinery, essential to every one in this complicated, modern civiliz- 
ation ; without this piece of machinery, there could not be the 
volume of business — agricultural, manufacturing and commer- 
cial — that there now is. The magnitude of these transactions 
is so great that this piece of commercial machinery must be 
kept in the very best order, and its capacity must be increased 
all the time. Without this, much business could not exist. 
On the other hand, without the business, this piece of commer- 
cial machinery would be idle and rust, and the relation between 
the two is very close. Injustice and unfair treatment of either 
by the other is sure to react, and this fact is a much safer 
insurance against any injustice on the part of railways than 
attempting to manage by legislation all of their affairs in great 
detail. 



American Railways The owners and managers of the American 
the Best. railways are, as a whole, today, furnishing 

the best and lowest priced transportation, 
and paying the highest prices for labor and material of any nation 
in the world. They want to give the public the very best service; 
they want to have their employes well paid, contented, and con- 
tinuously employed; they want to pay their fair share of taxes; 
they want to add to their properties and to keep them up to the 
mark. There are, however, only ioo cents in a dollar, and they 
cannot do all of these things unless they have some help from the 
intelligent, thoughtful men of the country. 



Duty of the Farmer Business men and the farmers must add 
and Business Man. to their own facilities, adopt improved 

methods for handling freight so that every 
car is loaded and unloaded promptly, and so that the greatest use 
can be made of each car and each track. Business men and farm- 
ers should post themselves about this great question, and call a 
halt in the continuous stream of hostile and repressive legislation, 
and should serve notice on the investing public all over the world, 
that money put into American railways is absolutely safe, both 
as to principal and fair return on the fair value of the property. 

16 



Today on all important questions but one the railway owner is 
directed by Acts of Congress, of State Legislatures and by the 
orders of Commissions and Bureaus. He has little control over the 
rates — over the hours of labor — over the rules for the conduct of 
the business in which his money is invested, over the taxes he shall 
pay. There is reserved to him the one duty and responsibility of 
finding money to pay the bills. 

The Congress, the Legislatures, the Commissions and Bureaus 
may pass laws and issue orders and the railways will obey them 
when they understand them and if they are constitutional and 
until they are exhausted. But there is one great fact that cannot 
be changed by legislative fiat or commission decree — and that is 
you cannot make a man invest his money in railways unless he 
wants to. You apple growers are fair men and you use brains, 
industry and energy in developing your business. For your own 
interest, and for the interest of your children who must have an 
increasing amount of safe and adequate transportation, use some of 
those brains, industry and energy in helping to form a temperate 
and sensible public opinion about the railway business of the United 
States so that justice will be done by those you select for the Legis- 
lature and for the numerous commissions, and to whom you give 
over the enormous power of control over the transportation system 
of the country, but with no responsibility as to financial results. 



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LIBRARY OF CONGRESS 




